Audits show executive branch has its own problems
By Marley Shebala
Navajo Times
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The Navajo Nation's legislative branch is not the only part of the tribal government with an efficiency problem.
On Tuesday, the Budget and Finance Committee called on President Joe Shirley Jr., head of the executive branch, to explain why five of his programs have not corrected financial and management problems identified as far back as a decade or more.
Elizabeth Begay, acting auditor general, reported to the committee that as of June 17, the programs were all under financial sanction - the most severe penalty imposed by the tribe for bureaucratic sloth.
Unlike the legislative branch, which has been the subject of several efficiency reviews in recent years, there is no similar evaluation of the executive branch. But there are audits of individual tribal programs, in-depth examinations conducted by the auditor general's office.
The auditor general recommends sanctions when an agency or chapter persistently fails to correct deficiencies identified in the performance audits.
The financial penalties include withholding 20 percent of the director's salary and 10 percent of tribal funding for a program until corrective action is started.
In recent years B&F members, frustrated with tribal agencies that ignore recommendations and continue to under-perform, have used the sanctions to spur them to action.
Once an agency has implemented its corrective action plan, the sanctions are lifted and the money restored, including back pay and operating funds that were held in escrow.
But for agencies such as the Capital Improvement Program, under the Division of Community Development, even financial sanctions have not done the trick.
The CIP office, headed by Casey Begay, has been under financial sanctions since Sept. 23, 2003, Elizabeth Begay reported to the B&F.
Design and Engineering Services, also in the Division of Community Development, has been under financial sanction since Aug. 7, 2007.
The Navajo-Hopi Land Commission office, which reports directly to the president's office, has been under financial sanction since May 2, 2005.
Sanctions were imposed on the Insurance Service Department, part of the Division of General Services, in October 2007.
The latest executive branch program to be thus penalized is the Navajo Area Agency on Aging, part of the Division of Health. Sanctions were imposed March 18.
Begay also reported that as of June 17, five chapters under the purview of the Division of Community Development remain under financial sanctions - Sawmill, Nageezi, Kayenta, Red Valley and Bodaway/Gap.
Sawmill and Nageezi were sanctioned starting in 2003, Kayenta in 2004, Red Valley in 2006 and Bodaway/Gap in 2007.
The sanctions have remained in place because repeated follow-up reviews showed that the programs - or chapters - failed to correct the financial and management problems uncovered by the tribal auditors, who conduct a detailed analysis of documents and interview staff members before making their report.
The audits examine operations over a one-year period, and usually are triggered by a request from a tribal member or an official. Audited agencies can challenge findings, and are given a chance to write their own correction action plan to address the deficiencies found.
For example, the CIP office's performance problems were first identified in an audit completed May 2, 1997. From that date, CIP staff had 30 days to develop a corrective action plan to address each audit finding and submit it to the auditor general's office.
Once the auditors review a corrective action plan and determine that it would resolve the audit concerns, it's accepted and presented along with the audit to the B&F for additional review and approval.
The program or chapter is then given time to implement its corrective action plan.
Generally, the auditor's office checks on the program about a year down the road to determine if the problems have been corrected.
Only if the follow-up review - sometimes there are multiple follow-ups - shows that the problems have not been corrected will the auditor general's office return to B&F and possibly recommend sanctions.
In an April 7 letter to Shirley, B&F Chairman Lorenzo Bates (Upper Fruitland) noted that a total of $482,449.32 has been withheld from the programs and chapters due to the sanctions.
Shirley, who appeared before the committee on June 17, said that he and the auditor general's office have been working together to implement the corrective action recommendations.
He added that the division and program directors were available to answer committee questions.
Shirley also submitted a written response to the committee in which he characterized all of the programs under sanction as vigorously working to correct their lapses.
According to Shirley's written response, the programs had submitted documentation to the auditor general's office showing their progress.
The auditors, however, told a different story.
For instance, in the case of the CIP office, the auditors found that the corrective action plan was not being implemented.
Capital improvements are bricks-and-mortar projects, such as water line extensions, bathroom additions, and playgrounds. The consequence of CIP's shortcomings has a direct impact on the standard of living for many reservation communities.
For example, the auditors found that the CIP office did not evaluate the importance of proposals so needed projects sometimes didn't get funding while less critical ones did. And it still doesn't evaluate them, the auditors found in the follow-up.
Auditors also said CIP is not using evaluation criteria adopted in 1999 - nearly 10 years ago - by its oversight committee, the Transportation and Community Development Committee.
Shirley, however, reported all kinds of activity by CIP, including a new Web site and online information on project prioritization.
"Three separate CIP plans have been endorsed by TCDC and BFC within the last three years," he added. "With the assistance and help of a consultant, along with DCD core team, we are in the final stages of amending the CIP policies and procedures for efficiency and strengthening the policy overall."
On the recommendation of B&F Committee member Jonathan Nez (Shonto), the committee unanimously voted to give Shirley until July 29 to bring the programs and chapters into compliance so that the sanctions against them can be lifted.
They expressed concern that when a government entity receives financial sanctions, it ultimately impacts the Navajo people.